Knowledge that Transforms

Recent publications of texts in accounting show some evidence that their authors have not always taken the same objective for their manuscripts as they would allege for the subject matter of their material utility. Reference notes are the case in point. It is true that the reader may proof the quotation, verify the expressed opinion, or find the more extended discussion when he is referred to. But in many areas of accounting, expressed notions, explained practices, and described procedures are especially perishable. Even a passing acquaintance with the more recent accounting literature should bring the realization that writings on accounting subjects must be evaluated or interpreted in relation to their place and time. The writer's plea may be simply stated: Use the same standards of disclosure and reader convenience in referencing manuscript materials as would be used in reporting financial data in statement form. In spite of style books, customs in legal literature etc., to the contrary, if the citation refers to vol. 13 of The Auditor and Bookkeeper, put the reader on notice immediately that the material was published in 1916.

Reviews the book "Successful Tax Practice," by Hugh Bickford.

Reviews the book "Farm Accounts," by F. Sewell Bray and C.V. Dawe.

The article focuses on the problems prepared by the Board of the American Institute of Accountants. These problems were presented as the second half of the November 1949 CPA Examination in accounting practice. The candidates were required to solve both problems in four and a half hours. A suggested time schedule is mentioned, for problem 1, the time schedule is 50 minutes and for problem 2, it is 105 minutes. A list of problems for students is mentioned in the article.

The article focuses on accounting for growth of business enterprise. Management must have adequate information as to the progress, or lack of progress, made by the concern for each fiscal period. Over the years, businessmen and accountants, working together, have developed the balance sheet to present data properly classified, clearly set forth, and pertinent to financial position. A well-constructed balance sheet presents in summarized form the various properties of the enterprise classified as to liquidity and sets off against these the various interests in or claims upon those assets classified as to type and imminence of claim. The income statement presents the results of the enterprise activities that are directed at making a profit. An increase in such activities may or may not denote an increase in over-all size. Many a company has found it possible to increase production substantially with no change in productive facilities or personnel. Increased net income may not always indicate increased operations. It may result from reducing or eliminating certain unprofitable operations or it may follow more efficient use of the same resources.

Reviews the book "Elementary Accounting," 3rd ed., by John Arch White.

Reviews the book "Basic Internal Auditing," by John B. Thurston.